News

Greek banks to remain

Greek banks will not open until 7 July in an attempt to avoid a financial panic after the referendum, with ATM withdrawals limited to €60.

The Greek Government decided on Sunday night that it had no option but to close the nation’s banks the following day after the European Central Bank (ECB) raised the stakes by freezing the liquidity lifeline that has kept them afloat during the six-month run on deposits.

In London the FTSE 100 had tumbled by 150 points (more than 2%) when trading began at 8am BST [1].

“The Greek butterfly looks set to cause a tornado in financial markets,” said Michael Hewson, chief markets analyst at CMC Markets UK [1]. The Athens Stock Exchange has not been re-opened today.

A decree from the official government gazette said all banks would be kept shut until after the referendum on 5 July.

[1] The Guardian. ‘World stock markets tumble as Greece crisis deepens’. http://www.theguardian.com